President Joe Biden wants to triple tariffs on Chinese steel and aluminum. He claims cheap Chinese exports are undermining American products.
China is the No. 1 producer of the two metals worldwide. The White House said the nation is not only “dumping” products on the market that are “among the world’s most emissions-intensive,” but subsidizing the industry to undercut American manufacturers.
“They’re not competing, they’re cheating,” Biden said.
Treasury Secretary Janet Yellen spoke about this on Tuesday, April 16, ahead of meetings at the International Monetary Fund and World Bank in Washington.
“This isn’t a level playing field,” Yellen said. “When the markets weaken, prices fall, it’s our firms that go out of business, those of our allied countries. Chinese firms continue to receive support so that they remain in.”
At the United Steelworkers Union headquarters in Pittsburgh, Pennsylvania, Wednesday, Biden called on the U.S. trade representative to more than triple the current average tariff of 7.5% on certain steel and aluminum products if an investigation revealed anti-competitive trade practices.
“We’re standing up against China’s government for economic practice and industrial overcapacity,” Biden said. “And we are the strongest economy in the world.”
Beyond tripling tariffs, Biden touted efforts by his administration to shield U.S. steel producers. Along with investigating China for unfair trade practices in shipbuilding, maritime and logistics, Biden reiterated the need for U.S. Steel to stay domestically owned. U.S. Steel shareholders approved a proposed merger with Japan’s Nippon Steel on April 12.
Biden’s speech comes as he and former President Donald Trump vie for votes in Pennsylvania, a crucial swing state for both candidates.
Biden is not the only one talking tough on tariffs. His move builds on tariffs Trump put in place during his term. Earlier this year, Trump proposed a 10% tariff on all imported goods and threatens to go much further on China if elected in November.
After a Washington Post report said Trump is considering 60% tariffs on Chinese goods, Fox Business asked Trump if that move was in the cards.
“No, I would say maybe it’s going to be more than that,” Trump said.
However, raising tariffs doesn’t just punish the likes of China. The Tax Foundation said that while the U.S. collected more than $230 billion from tariffs put in place by the Trump administration and kept in place by Biden, it’s Americans who bear the cost by paying higher import and retail prices.
